Are robber barons essential to capitalism? Is it a necessary stage for developing economies to go through?

Question

(think Russia)? Or does greed carry the seeds of economic ruin?

Answer 1

Depends on how much you structure your economy to facilitate competition. In a market with free entry and free access to capital, you can't have "robber barons" for very long unless the government facilitates it.

Answer 2

No, robber barons are not essential to capitalism.

Bill Gates and silicon valley entrepreneurs were not robber barons. Rather, capitalism allows 'rags to the riches' through innivationhard work. In Russia, people chose the career of comunist party functionary to get a chance one day to enjoy the life of a robber barron. Castro in Cuba enjoyed the same thing by rooting out competition and free enterprise even in the political field. He enjoyed much better life than an old robber barron. He robbed the people of all rights.

No, it is not a necessary stage for developing economies to go through (think Russia).

Yes, greed when it slowly pervades the different strata of the society carry the seeds of economic ruin. Afew greedy persons becoming successful and wealthy does not ruin an economy but nationalisation and mass socialisation of corruption and inefficiencies has and will cause economic ruin as it happened in China and India (may happen again).